The United National Transport Union (Untu) and the SA Transport and Allied Workers Union (Satawu) have rejected Transnet’s revised wage offer for above-inflation increases, raising the spectre of an industrial action that could disrupt port operations and blight the struggling economy.
The parties met at Esselen Park outside Kempton Park for intense negotiations over three days last week. The rail and ports operator revised its offer to 5.5% for the first and second years and 5% in the last year of the agreement.
The cash-strapped Transnet, which reported a R2.2bn loss for the six months to end-September, previously offered the unions an increase of inflation plus 1% in the first year and inflation plus 0.5% in the second and third years, totalling a cumulative 14.5%. Inflation is hovering at about 3%.
It remains to be seen how much Transnet will be allocated when finance minister Enoch Godongwana tables his delayed 2025 budget in parliament on Wednesday.
Interest on Transnet’s R100bn debt consumes R1bn a month, and economic pundits have said the company would require financial assistance from the state to fulfil its role as a crucial player in the economy and retain access to capital markets.
While Transnet and labour have embarked on a two-week cooling-off period and are set to reconvene on March 26, Untu and Satawu said they had rejected the employer’s revised offer.
Atenkosi Plaatjie, spokesperson of Untu, which has revised its demands, from a one-year, 12% across-the-board increase to 10%, said the union “outright rejects Transnet management’s revised wage offer”.
“This proposal is an insult to our members, and we refuse to take it back for a [members’ approval] process. It is appalling that management has not budged an inch to address employees’ legitimate demands for a fair and just wage increase — especially in the face of a crippling economic climate,” Plaatjie said.
“Their refusal to negotiate in good faith shows a blatant disregard for the workers who keep this organisation running ... Untu is fully prepared to take to the streets, if necessary.”
Mobilise
If the talks failed to secure a just and fair wage increment for “our members, who have long been bearing the brunt of the rising cost of living, we will not hesitate to mobilise for their cause”.
Plaatjie said Transnet management and labour would reconvene on March 26 for a “last attempt to find each other before reaching deadlock”.
Amanda Tshemese, spokesperson of Satawu, which is demanding a 17.5%, three-year hike, said the Cosatu affiliate noted Transnet’s revised offer. “However, we are rejecting it with the contempt it deserves... We are not going to move from our demand of [a] 17.5% salary increment. “The union is still open to negotiations,” said Tshemese who described the wage talks as “very tense”.
Transnet, however, said the revised offer remained above inflation and represented a 16% wage increment over the three years.
“This across-the-board offer includes an increase to basic salary and related components [13th cheque and pension fund contribution], medical aid subsidy and housing allowance,” the ports operator said.
“Transnet considers the offer to be reasonable and fair given the current financial and operational challenges and takes into consideration the cost of living, the wellbeing of employees, job security and the long-term sustainability of the organisation. The organisation remains committed to a three-year wage structure, which is conducive to a stable and predictable work environment,” it said.
Transnet did not respond to questions from Business Day regarding whether it was a final offer and how much it would cost to accede to the unions’ demands, saying only that it remained committed to entering into a multiyear wage deal.
Update: March 10, 2025
This article has been updated to reflect that Transnet did not respond to direct questions from Business Day.
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